Positive housing news from mainstream media

Who saw this coming?

My colleague Dan Gross recently wrote about the National Association of Realtors’ history of predictions that make meteorologists look spot-on. He’s right: it’s always wise to treat broker happy-talk skeptically, and that includes the NAR’s prediction of a housing market rebound in 2008. But amid their blarney, the realtors do make some valid points about how much is right with the economics that support the buying and selling of homes. Unemployment remains low. Interest rates remain very attractive by historic standards. It may be a less-than-stellar time to sell a house, due to extraordinarily high inventory levels, but it sure is a great time to buy one. Since many homes are bought by first-timers, who needn’t worry about selling a current house before they buy one, there is a pool of buyers who should stand ready to make offers.

Psychology is a powerful thing, combined with the fundamentals, it’s important to recognize the positives when they show themselves.

Contrast that with the release of today’s housing numbers, and the Calculated Risk’s always-excellent analysis.

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A localized analysis for the Charlottesville area is in the works.

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2 Comments

  1. Mark December 28, 2007 at 19:54

    Every time I hear “it’s a great time to buy a house” this is what I think:

    It’s a great time to buy a house, except compared to five years ago, when houses cost half of what they do today.

  2. Guy Lofts December 29, 2007 at 01:25

    Mark, it is interesting to see you, (a consumer) respond I presume to what the industry is saying about buying a home.
    I can understand your concern as the national press and it’s constant negative message is not helping consumer confidence, so you are getting 2 very conflicting messages.
    I blogged about the very same topic and it is clear to me that it is a great time in Madison Wi. try this link: http://homesforsaleinwisconsin.org/madison-wisconsin-real-estate-buyers-act-now/

    Your point that prices are still higher than 5 years ago is good, (Here in Madison Wi we are still not far off last years prices) Doesn’t that mean that Real Estate is a safe investment. Even in a down market, you can still make money if you need to sell.

    My blog talks about buying when everyone else is selling. Just like in stocks.